Option for ensuring continued success of super sized cycles

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Reference no: EM132171465

Super Sized Cycles specializes in making larger bicycles for overweight riders. Thanks to Internet sales, the company has increased sales every year. However, profits have been razor thin. The problem is that the company currently obtains parts form U.S.-based companies. Though this allows for individualized customer service, it is also expensive, as each bike costs roughly $1,250 to produced. If, however, Super Sized Cycles were to source materials to Taiwan, it could pay just $400 to $500 for each bike.

Questions:

What are the advantages and disadvantages of working with U.S. suppliers? Of working with foreign suppliers?

What would be the best option for ensuring the continued success of Super Sized Cycles.

Reference no: EM132171465

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